Monday, June 15, 2009

Revenue Model for Google, Amazon.com & eBay


Google is known to be one of the most informative, user friendly, fastest and most trafficked website in the world of internet. In fact, Google has become one of the global technology leaders which is widely recognized.

Google generates most of its revenue (more than 90%) through online advertising. With the volume of their site traffic, they focus on delivering relevant and cost effective advertising. They offer targeted advertising solutions and global Internet search solutions.

One of Google’s advertising program is Google AdWords which is a pay-per-click (PPC) advertising tool. Ads are displayed as sponsored link with regards to the information searched for. For every ad clicked, Google earned a fee from their advertisers. Google recognizes most of their advertising fee from Google AdWords.

Another advertising program run by Google is AdSense. AdSense allows the display of ads on websites and blogs which can be on a per-click or a per-thousand-ads-displayed basis. Google generates affiliate fees from the site owners whenever user clicks on the ads displayed on the websites.
Amazon.com is an e-commerce company and is known as one of the world’s leading online retailers.

Starting off as an online bookstore, it expanded into a variety of products categories online store. With the various wide range of products sold, it is obvious that Amazon generates most of its revenue through sales. Amazon attracts millions of customers worldwide.

Also, Amazon generates around 40% of its sales from affiliates from their “associates affiliate program”. Associates receive a commission for referring customers to Amazon through links. Amazon then generates revenue from the sales of these customers.




eBay is one of the world’s largest online marketplace. It engages in online auction and shopping of a variety of goods and services globally. eBay generates most of their revenue through sales of their products and also through transactions fees. For every successful transaction, eBay earns a transaction fee made by the bidders.

Besides that, eBay also earns part of their revenue through PayPal (online payment) and Skype (communications) which are owned by eBay too.

PayPall earns their revenue through online payments. Using the world’s most advanced fraud prevention system and with their safe payment solution, PayPall has gained users trust worldwide and has become a global leader in online payment solutions.
PayPall’s payment volume accounted for nearly 9% of the worldwide e-commerce.

Skype engages in internet communication whereby it allows users worldwide to talk online unlimitedly. Skype earns their revenue through calls made to and from landline and mobile phones, voicemails, call forwarding and ringtones.

Other acquisitions by eBay include shopping.com, Kijiji, Stubhub, rent.com and StumbleUpon

0 comments:

Post a Comment

 

Commerce Cafe Copyright © 2008 Black Brown Art Template by Ipiet's Blogger Template